Connected TV (CTV) streaming presents major new opportunities for brands. But advertising strategies require evolution as advertisers adapt tactics to optimize for CTV’s potential beyond traditional linear TV models. While advertiser interest and budgets for CTV streaming are rising rapidly, digital video still dominates the landscape. By optimizing campaigns specifically for streaming environments, advertisers can maximize CTV effectiveness even while digital video retains the larger spend.
Transitioning Campaign Tactics from Linear TV
Connected TV allows streaming of linear TV content along with digital video on demand. Advertising formats mimic traditional TV with mostly 15, 30 and 60-second video spots. However, digital video environments and audience behaviors favor shorter content. We see CTV streaming ad formats moving away from 60-second ads which comprise just 0% of buys versus 5% for linear TV.
Advertisers today grew up with linear TV advertising models. Adapting tactics to streaming requires a shift in thinking. Experts recommend techniques like flighting, brand safety measures, dayparting and copy rotation to optimize campaigns for CTV streaming environments. Integrated strategies blend CTV with online video ads on major platforms like YouTube and TikTok.
Testing and iterating on creative messaging and formats is also key. Interactive ads, dynamic product placement and integrated sponsorships allow brands to move beyond the interruption model and deliver more relevant messages. Consumers seek engagement rather than overt sales pitches.
Embracing CTV While Digital Video Dominates Spend
In 2022, major brands spent over $8.6 billion dollars on just the top 9 CTV streaming platforms. But YouTube alone garnered $15 billion in advertising. Among the top industries, digital video budgets remain 2-3x higher than spending on CTV streaming.
This demonstrates that while advertiser interest in CTV is spiking, optimization efforts still trail overall digital video budgets. However, metrics prove CTV delivers much stronger engagement, viewability and sales lift versus linear TV. As CTV streaming effectiveness becomes undeniable, budgets can be expected to migrate rapidly.
Just as importantly, CTV provides superior targetability compared to linear TV models. Streaming audiences are authenticated, while advanced solutions allow for household-level ad delivery. The resulting granular targeting creates enormous value potential for advertisers adapting tactics to CTV streaming environments.
Preparing for a Video-First Future
We are clearly entering a video-first era as CTV and digital streaming become dominant forms of content consumption. Early adopters investing to test and optimize campaigns specifically for streaming environments are already gaining advantage. They achieve better results at lower cost versus competitors still reliant on legacy tactics.
Laggard brands clinging to outdated strategies like repurposed linear TV spots risk losing relevance and missing out on prime exposure opportunities. As audiences and premium content shift rapidly to streaming, those who fail to adapt face declining reach and ROI.
Savvy brands are proactively building digital video expertise while adopting data-driven approaches. They understand that legacy models won’t suffice. Custom strategies, infrastructure and talent for CTV streaming must be prioritized now to prepare for the future.
The payoff will be superior exposure and performance in the high-growth streaming sector. By adapting tactics for the new digital video landscape, advertisers can form more meaningful connections with audiences. The brands that embrace this transformation will achieve outsized rewards.